Global financial centers: New York and London
New York and London are global financial centers, which in practice mean a great impact on these markets, most processes occurring in the global economy.
New York – the center of the U.S. capital market. New York retained the title of the leading financial center in the world despite the heaviest crisis in the last 70 years. New York is the second largest foreign exchange markets of the world – daily volume of currency transactions in the market at 500 billion dollars. The concentration of capital in the city is very high. Here are the world’s largest banks among which is the leading American. The heart of New York, of course, is New York Stock Exchange.
The City of London is the largest financial center in Europe. Britain’s financial service industry gives about 6.5 % of its gross domestic products (GDP) and contributes some 35 thousand million pounds a year. Its foreign exchange market, whose daily turnover of 294 Mln pounds represented 30% of Global turnover and was more than the turnover of New York and Tokyo combined.
The largest contributors are banks, insurance, institutions pension funds, and securities dealers. The Bank of England regulates the market. There is no physical market place; negotiations are conducted mostly by telephone or through automated dealing systems.